U.S. Stock Market Pulls Back After 6-Week Surge — Nasdaq, S&P 500, and Dow Await Key Catalysts

After a six-week climb, U.S. stock indices paused on Tuesday, with investors stepping back amid stretched valuations and light macro headlines. The Dow Jones Industrial Average fell 138 points (-0.32%), while the S&P 500 dipped 0.39%, ending its six-day win streak. The Nasdaq 100 also dropped 0.48% as traders booked profits in high-flying tech stocks.

📊 Dow Jones Outlook: Support Holds but Resistance Looms

The Dow slipped to 42,747, pressured by declines in industrials and financials. While defensive stocks like UnitedHealth (+1.8%) and Merck (+0.96%) offered some cushion, losses in American Express, Goldman Sachs, and Chevron weighed heavily.

Technical View:

The Dow trades below its February highs but has reclaimed its 50-day simple moving average, now holding as support around 41,175.
Momentum indicators suggest overbought conditions, and upside may be limited near the 43,500 resistance zone.
A cautious tone may prevail ahead of Friday’s durable goods data and updates on tax policy negotiations.

💡 S&P 500 Technical Forecast: Six-Day Streak Ends, But Structure Remains Strong

The S&P 500 closed at 5,940.46, down 0.39%, led lower by a retreat in tech names. Apple (-0.92%), Nvidia (-0.9%), and Microsoft (-0.15%) all pulled back, eroding the recent tech-led gains.

Despite this, the index has rallied over 20% since April lows, supported by easing tariff concerns and improved economic stability.

Key Levels:

Support: 50-day SMA near 5,597
Resistance: 6,100+ region
With the index just 3% off all-time highs, short-term consolidation could give way to a renewed rally if inflation data confirms further disinflation.

Sector Spotlight:
Healthcare stocks outperformed, with Regeneron (+3.2%) and Gilead (+2.8%) leading gains. The sector rose 0.27%, highlighting investor rotation into more defensive plays.

🚀 Nasdaq 100 Forecast: Tech Cooling as RSI Stretches

The Nasdaq 100 slid to 21,423, retreating from recent highs as enthusiasm for high-growth tech names waned. Super Micro Computer (-4.5%), Airbnb (-3.2%), and Amazon (-1.01%) led the decline, while Nvidia also gave back recent gains.

Technical Signals:

The index is still trading well above its 50-day SMA (19,626)
RSI indicators are near overbought, hinting at possible short-term pullback
Momentum remains constructive, but further upside may depend on Fed commentary and inflation readings

📅 What’s Next: Key Events to Watch

Market participants are now turning their attention to:

📄 FOMC minutes — for updated views on interest rate policy
📊 Core PCE inflation data (Friday) — a key gauge of underlying inflationary trends
📉 Durable goods orders — potential signal of strength or weakness in business investment

With major indices sitting just below resistance and momentum stretched, macro data will be crucial to determine whether this rally resumes or takes a deeper breather.

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Hamza Shah